Outsourced Bookkeeping – What It is and 5 Reasons to Use It
For a new business owner, it is tempting to save money by Do-It-Yourself (DIY) bookkeeping on their own. However, as the volume of transactions increases, you must look for a better bookkeeping solution. In addition, there are several other reasons to outsourced bookkeeping services. Let us start with ‘What is outsourced bookkeeping?” then, learn its benefits.
What is outsourced bookkeeping?
In outsourced bookkeeping, a third-party bookkeeping services company takes over your bookkeeping activities. It acts as an extension of your bookkeeping team.
This firm provides you with up-scaled services at a reduced cost. Their expertise is hard-earned and is difficult to find in-house in most companies. It is one of the key reasons to outsourced bookkeeping.
Alternative to DIY bookkeeping
You can go beyond DIY bookkeeping and explore more options. Alternatively, you can engage an:
- Outsourced bookkeeping services firm; Or,
- Hire a part-time bookkeeper
5 Benefits of outsourced bookkeeping services
You can ask for up or down-scale bookkeeping services
At the initial stage of your business, a bookkeeping services firm will take care of daily bookkeeping tasks. They will also use accounting software to digitise your transaction data. However, as your business grows, your bookkeeping needs will also increase.
These firms employ expert accountants and bookkeepers. They have the experience and knowledge to customise their solutions to your needs. They can quickly raise the bar and cope with your needs. They also handle complex finances across multiple business verticals and provide advanced accounting and CFO services.
Your in-house or part-time bookkeeper, despite understanding your business, may not be able to cope with the increased needs of your growing business. They may not have the exact skills to install an efficient bookkeeping system to accommodate the new verticals of the business. With the right bookkeeping services firm, you do not have to go to the market to search for and hire an experienced bookkeeper.
You get to access a team of experts affordably
Every business wants to save on the operating costs. However, preferring a cheap and less experienced bookkeeper in place of a highly experienced one is not the right solution for you. Top-ranked bookkeepers are costly and not easy to find.
Your part-time bookkeeper may not know the specific requirements of your business niche and may miss out on opportunities. It never happens with outsourced bookkeeping services firms.
These professionals are expert number-crunchers and operate on the knife edge. They always have a senior bookkeeper who is familiar with your business vertical. You get financial advise and insights from them without having to hire them.
Full-time bookkeeping
You cannot take care of your books by hiring part-time bookkeepers. They may not be available when you need them to handle a time-sensitive bookkeeping activity. It can be anything from a specific query from your customer or preparing a financial report based on the latest data. Their absence may not harm your business drastically. However, it leaves you in limbo.
On the other hand, you can contact your outsourced bookkeeping services firm during regular office hours and ask them to execute simple to complex tasks on a priority basis.
Some of them will extend their expertise to you no matter the time. They are also flexible about the amount of work they will do for you in a month. Their team shares the increased workload and makes things happen for you.
Access the latest bookkeeping tools
Keeping up with the advances in technology is challenging. Switching to the latest bookkeeping software is a hassle. It means you have to spend time and resources on selecting and implementing the right software as per your needs. If you multi-task to manage your business activities, then it is obvious that you will try to postpone it.
With outsourced bookkeeping services, you do not have to worry about which bookkeeping software to choose. They are the experts. They are proficient in using multiple software tools to do their clients' bookkeeping. They assist you in finding suitable tools and technologies to take care of your bookkeeping needs.
Face the new tax season with confidence
Which is a better option? Trusting a team of experts from an outsourced bookkeeping services firm with your tax calculations and tax filing. Or, asking your in-house bookkeeper to take care of it.
You will be better off with a team of bookkeepers. They will bring extensive and varied experience to update your books and streamline tax preparation and filing.
Their bookkeepers carefully classify your expenses and transactions. They chronologically file your invoices, bills and receipts. They update the books with the latest transactions and make them ready for the tax consultant. They do it accurately and within the deadline.
When they are done, you do not have to waste time checking for missed or wrongly reported data. These professionals use all the tax schemes and benefits to reduce your tax amount.
Many business owners feel stressed with the onset of the new tax season. The chances of getting their taxes wrong make them anxious. Your bookkeeping services firm takes the worry out of the task and frees you to grow your business. This is one of the main reasons to outsourced bookkeeping.